Crops, stocks and power can be traded on exchanges. An additional commodity was introduced in 2005: emissions certificates. The rising share of the atmosphere accounted for by greenhouse gases is deemed the root cause of global warming.

 

Within the framework of the Kyoto Protocol, the European Union made a commitment to reduce greenhouse gas emissions by 8% between 2008 and 2018, compared with 1990 levels.

They include carbon dioxide (CO₂), methane (CH₄), dinitrogen monoxide (N₂O), hydro fluorocarbons (HFCs), per fluorocarbons (PFCs) and sulphur hexafluoride (SF₆).

 

The Kyoto Protocol envisions taking reduction measures by using flexible tools, i.e. Emissions Trading, Joint Implementation and the Clean Development Mechanism. The European Union will employ these instruments to achieve Kyoto’s minimum targets. An EU-wide plant-specific system for trading CO₂ emissions including emissions allowances from CDM projects has already been launched for the period from 2005 to 2007.

 

The mandatory trading period including Joint Implementation pursuant to the Kyoto Protocol will begin in December 2008, following the test phase. The 5 additional Kyoto gases are to be included from 2008 onwards.

 

 

Information

 

Joint Implementation:
(JI) project credits in industrialized countries

Clean Development Mechanism:
(CDM) project credits in countries without Kyoto reduction obligations